JACKSONVILLE, Fla. – As housing affordability continues to challenge buyers, some are turning to artificial intelligence to cut costs during the homebuying process.
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A recent NerdWallet survey found nearly half of prospective homebuyers said they have used or plan to use AI tools as part of their homebuying journey this year, whether it’s researching neighborhoods, comparing mortgage options or helping navigate the purchasing process.
Now, a growing number of companies are taking that concept a step further by using AI to reduce real estate commission costs.
Florida-based Homa markets itself as an AI-powered, human-led real estate platform that allows buyers to receive up to 2% of a home’s purchase price back at closing by charging a lower commission than a traditional buyer’s agent.
“I spent six years working at Zillow,” Homa CEO and co-founder Arman Javaherian said. “I saw firsthand some of the struggles that homebuyers encountered. They were doing much of the searching themselves, finding mortgage lenders and inspectors, and often an agent would come in during the final weeks and make 10, 20, $30,000.”
According to Javaherian, Homa charges a 1% commission instead of the traditional 3% buyer’s agent commission.
On a $500,000 home, that would mean paying $5,000 instead of $15,000 in commission, allowing the buyer to receive a $10,000 credit at closing.
“On average, it’s over $10,000 they’re saving,” Javaherian said. “We had one homebuyer on a $2.4 million home who saved $58,000.”
The company still connects buyers with licensed real estate agents, but uses AI to streamline much of the process, including scheduling showings, generating paperwork and handling administrative tasks.
“We offer full service, but we’re AI-powered and AI-native,” Javaherian said.
He compared the company’s showing process to ride-sharing apps like.
“When the buyer goes on the website and says, ‘Hey, I want to say this house tomorrow at 10 a.m.’, we send that out to the network of agents that are in our network. And the first one that accepts it, just like Uber, will go and schedule it with the seller.”
AI is increasingly being used throughout the real estate industry to generate listing descriptions, create marketing materials, summarize contracts and help buyers research neighborhoods and mortgage terms. It’s also being used in many for-sale by owner situations.
But experts caution that AI should supplement, not replace, experienced professionals.
“I don’t recommend using only AI if you’re buying a home,” Javaherian said. “It’s very important to actually have a buyer’s agent.”
Jon Brooks, housing market analyst and co-founder of Jacksonville-based Momentum Realty, said affordability concerns explain why buyers are looking for ways to reduce costs.
“We’re in an affordability crisis right now, so any way that people can save money is I think is a good thing,” Brooks said.
Still, Brooks said consumers should be cautious about relying solely on AI or selling a home without professional representation.
“Statistics show that [homes sold by owner] get about 88% of the list price,” Brooks said. “Meanwhile, top real estate agents are getting around 96% to 98%. A top agent more than pays for the cost that it takes to hire them and they take all of paperwork off your plate.”
Javaherian said his company’s hybrid approach is designed to preserve those professional services while reducing costs.
“The average first-time homebuyer down payment is 6%,” he said. “If you give them back 2%, that’s a third of the down payment they’re now able to afford.”
Anyone considering a lower-cost AI real estate service should ask detailed questions before signing up, including whether a licensed agent will negotiate repairs, review contracts, manage inspection issues and provide guidance throughout the transaction.
While AI can simplify parts of the buying and selling process and potentially reduce costs, experts agree that one of the largest financial transactions most people will ever make still benefits from experienced human oversight.